Small SUVs are the fastest-growing segment in the United States and China, the world's largest auto market, where Tesla is building a factory, making the Model Y well positioned to tap demand. It will share 75 percent of its components with the Model 3.

With the Model Y, Tesla has finally unveiled the last vehicle in its "S3XY "roadmap". It has a range of 300 miles, seating for seven, is capable of sprinting from 0 to 60 mph in 3.5 seconds.

That plan - later scrapped - ushered in a period of turmoil at the company, from Musk's public battles with regulators, a flurry of securities lawsuits, cost cutting and layoffs.

CEO and founder Elon Musk believes that demand for the Model Y could outstrip the Model 3, which has proven itself by a very long yard the most popular EV of 2018 and became the USA's best-seller in its segment late past year.

The vehicle is created to use a lot of the same parts as the Model 3 (Musk put the number at 75 percent in an earnings call earlier this year) so ramping up production shouldn't be as hard.

The risk is "quite low" Musk told analysts in January.

Tesla will ultimately offer the Model Y in four configurations. The Model Y has 66 cu ft of cargo space. Its exteriors boast of a similar fascia as seen on the Model 3. Suppliers were originally told production would start in November 2019, sources told Reuters previous year. Musk said that the Model Y will start production in 2020 with steady deliveries by the end of that year. In January, he said Tesla had ordered the tooling needed to build the auto.

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